Intelligent Rail Summit ‘24: Rail Baltica states team up with EU to streamline megaproject across borders
It’s less than two weeks now until the Intelligent Rail Summit ‘24, and Rail Baltica appears to be thoroughly in sync with one of our conference’s main topics: connecting Europe. The Baltic states’ mobility ministries have recently teamed up with two EU technical support bodies to set up a unified approach to implementing the Rail Baltica megaproject. That’s as the real-life implementation of the massive programme continues to throw up major challenges, particularly in terms of how to stagger construction and secure cross-border financing. Logistically and technically, it’s a headache, and hugely informative to anyone in the industry hoping to know what it takes to pull off such a big project. Luckily, IRS’24 will be breaking down these issues in Tallinn very shortly…
At its heart, Rail Baltica is nothing if not a project aimed at connecting Europe. But recently it has taken steps to make sure this connection is even tighter. Latvia and Lithuania’s transport ministries and Estonia’s climate office are working with the European Commission’s Directorate-General for Structural Reform Support (DG REFORM) – with the support of the bloc’s Technical Support Instrument (TSI) – to create a new, unified approach to progressing the Rail Baltica project.
The multi-billion euro project is set to see the Rail Baltica main line run from the northern tip of the Baltics in Tallinn through to Latvia and its capital Riga, all the way down to Vilnius in Lithuania and on to the Polish border. Each country has announced huge tenders for the megaproject in recent weeks, with construction works on the new Rail Baltica station next to the Riga Airport in Latvia entering a new phase just last week.
Rail Baltica teething pains
However, like with any major project, there are major teething pains, particularly with securing long-term financing. The news came this week that Latvia will likely have to scale back its initial plans for a double-track line from the Lithuanian border to Estonia, prioritising instead the use of a single track. That’s in part due to uncertainty related to funding.
Rail Baltica estimates that the first-phase cross-border connection from the border of Lithuania to the border of Estonia will cost around 4.5 billion euros, but there is currently no guarantee that the rails can be built all the way to Estonia, Transport Minister Kaspars Briškens recently stated, due to budgetary constraints.
“This is something we need to push for and fight for. That is why the negotiations on the European Union’s multiannual budget are critically important for us,” Briškens said.
Securing EU funding
“The Latvian Ministry of Foreign Affairs has already started coordinating work on a national position. Here we will have to stand shoulder to shoulder with our Lithuanian and Estonian counterparts, fighting to ensure that the Rail Baltica project receives the highest possible funding in the next seven-year EU budget, which will then determine the speed at which we can move northwards, but at the same time this cross-border link is a priority for both Estonia and Lithuania.”
When asked how likely it is that the line will not be realised, he said that “we should probably ask our diplomatic service or the Ministry of Finance what our expectations are for these multiannual budget negotiations of the European Union.”
Latvia’s plan for project’s first stage
Still, the ministry now has a plan for the first stage of the project:
- Building a single-track railway from the Lithuanian to the Estonian border, beginning with the Lithuanian-Misa section using available funding.
- Completing construction at Riga Airport (RIX) and the southern Riga Central Station (RCS) by reallocating Recovery and Cohesion Fund resources to enable full operations at these stations.
- Constructing a new line from Imanta to Riga Airport to connect both stations with a broad-gauge railway, integrating the airport into the existing network ahead of European gauge construction.
- Building at least four regional stations (Salacgrīva, Skultes muiža, Salaspils/Daugavkrasti, Bauska), infrastructure maintenance points in Iecava and Skulte, a traffic control centre, and a side road for the Salaspils freight terminal.
- Developing a European gauge connection to one Riga station, prioritising the most feasible route (Upeslejas-RCS or Misa-RIX) based on technical and economic analysis, potentially using Public-Private Partnership (PPP) for funding while directing EU funds to priority activities above.
And hopefully, these plans will be helped along by the new unified cross-country approach to implementing the project.
Rail Baltica: working together to connect Europe
Last Friday, a project kick-off meeting was held at the Ministry of Transport of Latvia, where the Baltic countries and EU representatives discussed the goals of the wider project, including its achievable results and the applied methodology to find a unified approach to its infrastructure management and legal framework.
The common goal, Rail Baltica said, “is to reduce the obstacles related to the administrative differences of the countries, which can impede the effective cross-border operation of the Rail Baltica railway line.”
The three priority directions of the project will be: firstly, issues of unified cross-border public service obligations (PSOs); secondly, the development of an effective legal framework for infrastructure management; and last, and perhaps most importantly in terms of the current struggles, the development of a financing model for Rail Baltica infrastructure facilities, including rolling stock depots, cargo terminals and passenger stations where the costs are not directly covered by EU funding.
Streamlining PSOs and regulations
Up until now, Latvia, Estonia, and Lithuania have each developed their own approaches for managing rail services in their countries. However, to make the best use of Rail Baltica for cross-border travel, rail services along the line won’t be able to stop at national borders. A market analysis as part of the new collaboration will help design a public service model that maximises the benefits of the Rail Baltica infrastructure across frontiers, with the aim of truly connecting the EU nations’ rail networks.
🏗️As the construction of the #RailBaltica station🚉 & related infrastructure at @riga_airport continues, work is now underway on the #viaducts in both directions from the future passenger terminal building.
ℹ️ https://t.co/SqVBGqSJe8 pic.twitter.com/gExKk64tpy— RailBalticaOfficial (@RailBaltica) October 21, 2024
The project will also provide recommendations to update laws, ensuring that Rail Baltica is managed as a unified system while following EU regulations. Although each country will own the Rail Baltica infrastructure within its borders, the goal is to operate it under shared guidelines and conditions. This includes aligning safety management, traffic control, capacity allocation, pricing principles, and other operational cross-border topics.
Financing for the future
As for financing, the project will look at solutions for attracting additional funding at the European and national levels from both public and private sources to cover the construction costs. The Connecting Europe Facility (CEF) can cover up to 85 per cent of certain direct project costs, mainly for essential railway construction like tracks, foundations, and system installations. However, other project-related facilities—such as nearby infrastructure not directly part of the railway—are considered “indirect costs” and won’t receive EU funding.
🚆Join us in in Tallinn 🇪🇪 for #IntelligentRailSummit as we discuss the future of rail, including topics like predictive maintenance, AI integration, & cybersecurity.
❕ Use the code IRS24RB25 to receive a 25% discount on your registration. pic.twitter.com/B0yQIyTVaF
— RailBalticaOfficial (@RailBaltica) October 24, 2024
Rail Baltica said all the parties involved in the new project had agreed that regular meetings would be organised “for effective project management.” And for anyone in the industry focused on the future of European rail, such cross-border management is going to be one of our key concerns at Intelligent Rail Summit 24.
Rail Baltica at Intelligent Rail Summit ’24
Rail Baltica will be at the forefront of expanding European rail. That includes integrating technologies like AI, big data, and machine learning into its far-spanning systems, as well as streamlining them across the various nations’ borders. It’s a massive part of the construction process and will be central to operations once the trains hit the tracks.
But still in their relative infancy, how exactly should these technological advancements be used to truly transform rail operations and efficiency, while simultaneously maintaining safety? And with all this increased processing power, how can we ensure such progress remains green and secure from cyber threats? Nevermind how all these considerations should be applied when working with so many different national and international bodies.
From the real-life application of AI to the twists and turns of the continent’s most ambitious infrastructure project, top rail specialists all the way from Rail Baltica management team to Estonia’s Infrastructure Minister will be exploring these issues at RailTech’s Intelligent Rail Summit ‘24 in Tallinn between the 12 and 13 November 2024. Essentially, if you want to help shape the future of Europe’s rail industry, Tallinn is the place to be this November. Register now and find out more about the exciting programme here.
